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We only ask that comments beyond the breaking news be kept to other pages or this page will be ‘out of control’ and not fulfilling what I hope is a handy alert page.


2,945 thoughts on “READER INITIATED ALERTS”

  1. KEN is down wacky today, not sure why. Anyone with insight (beyond the shipping side). I doubt this is followed here by many, but I did when they were getting the big ZIM divvies, and I stayed with it.

      1. yeah, I knew that was coming, but didnt see the date when I looked. Duh. I feel quite dumb. Sorry all!

  2. Bought a bunch of CHSCN at 25 today. 7.1% for just under a year and then it floats at L+4.155( but not over 8%). I expect they will call them unless rates go up much further but who knows? unrated but believed by many to be of investment grade quality.

    1. I hold small positions in CHSCN and CHSCM, both first call dates are approaching.
      Hopefully they will not call them, but since I bought slightly below par, I am fine either way.

  3. Comerica 3.7 7/31/23
    I just sold mine at 98.4. Not willing to risk 98.4 points for 1.6 point upside even if the chances are low. Bid is still there for 300 bonds

  4. UK watchdog orders publication of ‘synthetic’ dollar Libor rate

    Financial Times

    The UK financial watchdog has ordered that some Libor rates continue to be published beyond the original June deadline, giving market participants more time to shift away from the tainted lending benchmark.

    The Financial Conduct Authority said on Monday that synthetic versions of the one, three and six-month US dollar Libor rates would continue to be published “for a short period” after the original June 30 cut-off point — before ending for good in September 2024. Synthetic Libor attempts to mimic what Libor would have been, if it had continued to exist.

    The regulator’s decision, which follows a consultation last November to gauge views on a synthetic rate, is the latest sign of how extensive and complicated the transition process has proved. A large proportion of the $1.4tn US “junk” loan market had not yet switched to Libor’s replacement, the Secured Overnight Financing Rate, with just months to go at the start of this year.

    US dollar Libor was used for decades to price various debt and derivative products around the world and became key to multiple manipulation and price rigging scandals since the global financial crisis, with several traders facing criminal charges.

    The US leveraged loan market — which typically refers to low-grade loans with floating interest rates, issued by companies with large debt piles — has been a battleground for the transition away from the Libor benchmark because of disagreement over the appropriate terms of switching.

    The biggest buyers of US leveraged loans are vehicles called collateralised loan obligations (CLO), which own roughly two-thirds of the market. Some CLO investors have pushed for an additional “credit spread adjustment” to account for the lack of risk premium factored in to the new Sofr rate, owing to differences in the way the two benchmarks are constructed.

    The FCA said “a small but material subset of contracts” would not be able to transition away from US dollar Libor by the previously announced end date of June 30, and that a temporary extension “may help market participants to transition . . . and thus avoid a disorderly cessation.”

    “Synthetic Libor is only a temporary bridge,” the FCA said, adding that it “will not continue simply for the convenience of those who could have transitioned their contracts but have not done so.”

    All “legacy contracts except cleared derivatives” can continue to use the three agreed Libor rates, the regulator said.

    The FCA said on Monday that the extra 15 months of synthetic Libor publication gives users plenty of time to shift to an alternative rate and that any outstanding exposures beyond September 2024 “may be due to parties to contracts having made a conscious choice not to transition, or having failed to take steps to transition in a timely manner.”

    The FCA has already extended publication of some synthetic sterling Libor rates beyond the December 2022 deadline.

    1. So what will this mean in practice, Tex? Is this an official extension of 3 month LIBOR beyond 6/15?

      1. That was a UK decision, not in our policy domain. Congressional act stated after June 30. Synthetic doesnt sound “real” to me, I guess that doesnt matter because the real one was manipulated to begin with. I bet you see some companies that have plans “stick to the plan” ala Citi, etc.

    2. Just like Monty Python:
      “Take him away.
      I ain’t dead yet!
      Oh…you will be soon…(apply club)
      Thanks! (give tip)”
      Those who control power through control of law/regulation and courts control the society and enlist ALL vassals to their cause. This is also why Corporations are NOT People, persons and their extensions of power make decisions. This is why I am not an optimist for positive real results in our future…call me a Killjoy. Everybody is special now. Reviewing recent history, over the last 100 years the Chinese have been the most successful for the most individuals. What happens over the next 100 years now is “interesting”.
      What ever happened to meet the deadline or you get an F or a fine? That’s the way I have to live!
      Think about 2B2F here…just another day at the Country Club.
      WHY are we still playing these games? That’s why I do not participate in volatile LIBOR, SOFR, F2Fl, adjustable instruments though am exposed through managements decisions to use them liberally because they are smarter.
      Signed, The Caffeine Club.

    1. Looks like WAL is sitting on some big losses. Plus the market got spooked bc management didn’t put out deposit numbers like they normally do.

      1. I heard on CNBC that WAL released deposit info mid-day yesterday. As I recall it was showing deposits up and recent deposits were flat, so no run off. WAL recovering nicely today, did a quick flip on a PUT from yesterday and made a few bucks. WAL-A up about 1.5% for today as well.

      1. Tim, precisely the reason, I am not buying. I made my bed with the 2031 at 9%. The relative value is definitely there though being the 2031 and 2078 is same subordinated debt cap stack, though the 2031 does not have the deferral clause. And just because its trading now (though the bond desk takes pride in ripping people off almost as much as expert market does) doesnt ensure it will remain indefinitely. If memory serves bond market kicked and screamed and got a period of time reprieve from the disclosure laws that led to delistings. If SEC doesnt change course this and others on the bond desk could go dark also (including the 2031 issue of course).

    1. GRID, I don’t remember seeing Quantity of Units being reported on FINRA: 1250, 1278, etc.?
      Mind giving lesson to a layman? Guessing it is the price of the preferred at half of par?
      Didn’t think it would trade that way.

      1. Joel, I am assuming you are referencing individual transaction of shares or bonds sell volume? Its different reporting for $25 baby bonds on bond desk than actual $1000 bonds. For example with a $1000 bond purchase it will show 7000. That means 7 bonds actually were traded. With the baby bonds though my assumption is that amount posted is the actual shares purchased in that individual transaction. FINRA has always shown trade volume per transaction or at least in the years that I have tracked it from.

        1. Thx, Never thought of or seen BBs getting reported over FINRA, thought oit would be the underlying debenture, etc. Will hold the ’31 ‘real’ bond. That has done well, just going by gain from buy to today’s pricing.
          In general, Looked around at some Goodyear/Cooper, ATO and even MPT bonds with no actions by me. Tires, Nat Gas and Healthcare?? Seem to still be in demand.

          1. I like the “real bond” in quotations. Very fitting because it is a “fake” bond too in some form. Its genesis was a spin off from the now defunct SJIU.
            There are actually at least 2 more baby bonds I am aware of on bond desk. Old tickers were PFX and IEH.

    2. Gridbird, Thanks for the heads up on this one, but I already have a full position on the other South Jersey that matures in 2031. At least I maybe alive when it matures! Tempting though at a little over 10% to trade out for this one…….. I bought the 2031 bond at about 8.8%.

  5. EYE OPENING look at First Trust Preferred ETF symbol FPE. Look at a comparison chart to the largest preferred ETF, PFF. They were tracking closely until March 15, when FPE fell out of bed. You might ask why? Take a look at the FPE holdings

    Scroll down to the bottom where you will see five different Credit Suisse holdings. The largest one was CUSIP 225401AJ7 ~ $77 Million @ par =100. Unfortunately, all five of them were CoCo/AT1’s (Contingent Convertible Capital) which were written to ZERO when Credit Suisse had a forced marriage to UBS. FPE shows all five of them valued at zero. If they were bought at par, 100, it would amount to a loss of ~ $238 million, or roughly 4.2% of net assets.

    The summary sheet shows FPE has an overall allocation of 22.2% to CoCo/AT1’s, so they made a major bet on them beyond just the Credit Suisse ones. Surprising to me to see a US based preferred ETF with this high an allocation to them. They must have offered an outsized yield compared to standard preferreds, even the $1k face institutional ones.

    BOTTOM LINE is you better know what your ETF holds.

    We do not hold FPE in any portfolio, nor have open buy/sell orders for it.

    1. I wouldn’t mind owning a few of those CS CoCo’s if the price is right, like $.005 on the dollar. The entertainment value of getting copies of the court documents on the upcoming legal wrangling would be better than a movie ticket.

  6. CHRB up about 22% on NO NEWS. Common is down today.

    It does go ex 4/13, but today seems early for a 22% jump.

    Any ideas what’s up with that?

    I’m thinking I should lighten up here.

      1. 2whiteroses, I entered a sell at 11 and got a partial execution. Bid/ask was 10.50/11.55 when I entered the order. So someone else thinks it is worth about 20% more than it was yesterday.

        Bid down to 10 as I write this. As you may know, CHRA filed last week with SEC to file their 10-K late. Maybe somebody knows something? But I think the common would be the way to play something of that nature. Not that I would play common. 🙂 Just wondering what’s up.

        1. I know absolutely nothing about CHRB, but I figured a 22% move up was worth taking a look at out of curiosity….. The only other observation I made when looking was that beside that 300 share trade, the bid had subsequently increased as well, perhaps not coincidentally for 300 shares from 9.25 to 10. Could the beneficiary of the fat finger buy, aka the [short?] seller at 11.50, be the buyer of your partial (I only see a 1 share trade) sell at 11? Stated bid remains at 10 for 300 shares with an underbidder for 100 at 9.96.

    1. Mystified. CHRB is truly deep in the gambling camp. The times for fast, easy, cheap money, easy ipo, … are probably over. The books dont look good at all, but then again it is a startup. But 4 years later the books really are not improving. I also dont invest in companies with a market cap the size of my portfolio. This is a very small company. The revenue needs to increase and not decrease. The only thing consistently increasing is the operating expenses. Good luck.

      1. “I also dont invest in companies with a market cap the size of my portfolio. ”
        Words to live by! Good one.
        Now, if I could just get near that level….

    2. Today- delisting notice from NYSE- now on the OTC pink sheets- fee to trade. Off a couple bucks. Probably candidate for gray mkt.

      1. Charah Solutions, Inc. Receives Notice From NYSE Regarding Continued Listing Standard
        LOUISVILLE, KY / ACCESSWIRE / April 3, 2023 / Charah Solutions, Inc. (the “Company”) today announced that the Company was notified by the New York Stock Exchange (“NYSE”) of its determination to commence proceedings to delist and suspend trading of the Company’s common stock and 8.5% Senior Notes due 2026 (the “Notes”) due to failure to meet the NYSE’s $15 million, 30-trading day average market capitalization standard. The Company anticipates that, effective April 4, 2023, its common stock will commence trading on the OTC Pink marketplace (the “OTC Pink”) under the trading symbol “CHRA” and the Notes will commence trading on the OTC Pink under the trading symbol “CHRB”. The Company’s transition to the OTC Pink is not expected to affect the Company’s business operations.

        Apparantly they were kicked out of the NYSE. And the last sentence means there’s nothing to worry about?

  7. Weekend Shout Out?
    Now that we are both retired anf have more time, the Wife went over the tax filing with a fine tooth comb since we have a simpler non-business/real estate filing now. She wants to question our filing of income, limited amounts of K1 distributions, IRA and non IRA. I HATE to bring this up here again, but can not really find info on Internet. I have used the info gleaned here over the years, but this year are on trial by the Spousal Court. Actually, this will be a template for the rest of our future filings so getting it right IS probably a good idea.
    Rather than me writing what I think I know, and have used, in the past; will any brave soul care to publish a brief Layman’s Guide, with NO ADVISORY SERVICES intended on what they have done ??
    – She also wants to drag in the Foreign Taxes paid on Canadian Securities shown on 1099 DIV.
    – It can be 1116> Sch 3 (1040) as BobDE recently published elsewhere, but also
    – on 1040 as “Taxes Paid and sent on a 1099 (DIV on the brokerage statement). The 1116 takes away the credit, but the 1040 gives the full credit??
    I bow and deliver to The Lords! JA Thanks in advance to any brave souls.
    God Bless any one who may reply!! JA

    1. This is my last year as a full time tax preparer.
      I am forgetting more and more arcane rules and regulations.
      But, I’ll give it a try.
      The 1116 Foreign tax credit qualifies and quantifies your credit.
      If you have a specific question, I’ll try to answer it.
      I think tax software allows you (in some cases) the credit without filling out the 1116.
      On my tax software, in the dividend section, there’s a box you check off and the 1116 won’t need filling. I don’t know if your software allows that.

      What is the requirement to file form 1116?

      Here’s Google search result:

      If the foreign tax paid is more than $300 ($600 for Married Filing Jointly) or they do not meet the other conditions to make the election to claim the foreign tax credit without filing Form 1116, taxpayers must file Form 1116 to claim the foreign tax credit. See Publication 514 for details.

      Hope that helps.

      1. Newman, Thx, JA
        Using 1116 leads to a Zero moved over to Sch 3. So seems there is no credit for paying CN tax even with a 100% tax treaty. So that’s what we will do , follow the bouncing line by line instructions.

        1. If you paid foreign tax, but Form 1116 shows a zero tax credit, you probably didn’t enter your foreign source income correctly. It’s not imported from the 1099-DIV.

          Also, CN = China. I think you mean CA = Canada.

    2. Joel A

      What are the K-1 questions that your wife has?

      I receive a few K-1’s in both the IRA and after tax accounts and may be able to help.

    3. Hi, Joel.
      My tax software handles the form 1116 bit. Either Turbotax or HR block, it’s no hassle.
      I don’t know anything about the K-1s. In the past, I did not find using TT or HRB all that easy to deal with, so I avoid k-1 securities like the plague now.

  8. The Seapeak, LLC 20-F was filed about an hour ago (Seapeak preferred shares SEAL-A, SEAL-B): (list of filings) (20-F)

    Haven’t had a chance to thoroughly digest the filings, but it appears the sponsor Stonepeak is making sizable contributions to the business (in return for shares):

    On December 19, 2022, the Company received an equity contribution of $129.3 million from Stonepeak in connection with funding the first installment payments for three of the five Samsung LNG Carrier Newbuildings the Company ordered in November 2022. On February 10, 2023, the Company received a further equity contribution of $86.2 million from Stonepeak to fund the first installment payments for the remaining two Samsung LNG Carrier Newbuildings. On March 8, 2023, the Company issued 11,383,543 common units to Stonepeak based on total equity contributions received of $215.5 million.

    See , page F-38, section 21, subsequent events.

    1. Thank you ESW for posting. They committed to filing financials and that allows the preferred to continue to be listed and 1st qtr report looks good from just skimming it.

  9. What an amazing close.

    NLY-F being offered at 23.93 in after hours still. Was at 24.5 all day then puked on the rebalancing close. It should trade much higher than Nly-g

    AIG-A also still being offered on sale in after hours

  10. MONEY MARKETS 3/31/23 ~ 7 DAY YIELDS

    * VMRXX ~ 4.77%
    * VMFXX ~ 4.76%
    * VUSXX ~ 4.71%
    * SWVXX ~ 4.68%
    * SN0XX ~ 4.52%
    * SNVXX ~ 4.45%

    1. I wonder about how well those numbers follow-thru when the monthly payment comes. Ex: for the month preceding the last payment, SNOXX was touting around 4.27% consistently. Come pay out, it was about 3.97%
      Pretty much the same the previous month.
      Even BIL & SGOV have similar differences – altho, theirs are 30day.

      1. Expense Ratios on MMAs:

        SWVXX, SNOXX SNVXX ~ all 0.34%
        VMFXX ~ 0.11%
        VMRXX ~ 0.1%
        VUSXX ~ .09%

      2. For SWVXX and probably other Schwab MMs, its a 7 day yield. There is no ex-date for MM, you accrue interest each day at the then prevailing rate for that day. SWVXX 7 day yield of 4.68 is net of expense ratios.

    2. UFB Direct Online savings account is at 5.02%. That is where I am parking my cash. Have used them for years on and off.

  11. STAR-I has been pulled from my eTrade IRA account this morning. Account shows a CUSIP number with $0.00 value.

  12. can’t trade them at td so i’m assuming they are gone even though they are still showing in my positions

  13. STAR and SAFE – Safehold and iStar Close Merger and Complete Spin-Off of iStar’s Legacy Assets to iStar Stockholders

    Has anyone OFFICIALLY seen the status of the STAR preferreds now????? They are supposed to be called along with this closing according to all documents leading up to it, but I’ve not seen any notice of call. Currently TDA still shows them as being in my account but this morning it looks as though they will no longer be trading…… don’t know if these will be subject to the 30 day advanced notification before they get called or not at this stage.

    1. 2WR, I have the STAR preferreds at Vanguard and Merrill Edge and have not gotten any notice about them being called yet. Anyone reading this that is long the STAR preferreds please post if these preferreds get called in your accounts Hope you are doing well, Azure

      1. I also owned all 3 unsecured notes and they were called today as per the plan, 2 at make whole prices and one at 102.75…..The difference was that that was required by indentures.. Preferreds never were but proxy, plan of merger and all published proforma financial statements have shown them to be gone going forward. . STAR Investor Relations has been completely useless, not responding to numerous inquiries all month.

        1. I just emailed their Investor Relations area and will see if they respond now that the merger is over. If not, I will call them later today and hopefully I can get us answers. I have no issue with them not calling them, but at least let everyone know so we can decide what to do.

          1. Thanks, AB…. the interesting thing will be where they would end up in the restructuring if they remain outstanding…. no matter where, though, I suspect they will have improved credit parameters post merger.. Still, personally, I would have an issue if they end up not calling them….. It would be in contradiction to what shareholders voted for in the Proxy Statement.

          2. I own a STAR preferred at TDA, It has been ‘frozen’, which means it will be called in soon. ‘2Whiteroses’ commented above that the preferreds were called in today ( so the $$$ should be added to your account(s) early next week. )

      2. Fidelity shows my STAR-I up with the bonds in the CUSIP area (along with what was COWNL), so presumably called.

      1. I was told by my corp actions dept that the projected payout date (not guaranteed) for the star preferreds is April 3rd, we’ll see.

  14. Anyone know what is going on with wrb-e? Up on heavy volume the last 2 days, can be called today but see no news.

    1. Sold mine today at 23.70 who knew I could of gotten more? Wouldn’t worry about a call right now cost of borrowing money to float a new issue with rates like they are wouldn’t make sense.

  15. Many have inquired why C-N stays outstanding. This is the best explanation from Barrons. Of course C has option to redeem at any time.
    Despite having to pay such a high yield, Citigroup has opted not to redeem the preferred since it could do so in 2015. That has encouraged investors to believe that the bank will leave the preferred outstanding, perhaps until its maturity in 2040. Why?
    The company has said in the past that it would be uneconomic. Due to a quirk in accounting rules, the securities are carried on Citigroup’s balance sheet for about $1.5 billion, not their face value of about $2.2 billion. A redemption would cost $2.2 billion at the face value of $25. This would result in an accounting loss of more than $700 million.
    “If we were to redeem this, we would take a large hit to our P&L. And that’s just the way that the bookkeeping has worked on that security,” said Citigroup chief financial officer John Gerspach in 2017 on a conference call. “The decision to redeem that security is largely an economic one. Is it worth taking a large loss to redeem?”
    In a statement to Barron’s, Citigroup said: “As we’ve stated in the past, due to this grandfathered security’s carrying value on the balance sheet, it’s more attractive economically to leave it outstanding rather than to call it at this time. We continue to assess this on an ongoing basis.”

      1. Bur I was just answering an oft inquired question over the years that never really had the question answered. All the other stuff including investing suitability or future performance is out of the scope of the post.

  16. PW-A has been dropping like a rock in the last few days while the common is holding up much better. Does anyone know of any news other than the suspention of the dividend?

  17. SLG/I – Interestingly enough, two insider purchases on the SLG preferred on 3/24 in the low 16 range. First real insider buying I have seen in the office sector, aside from PGRE

    1. sjc123,
      I have been watching SLG closely too. Used to own a few shares, always traded slightly above $25 a share when I had it. They own more NYC office space than any other REIT and a ton of debt to go with it. I did read somewhere that some of the office REIT companies were looking very closely at converting excess office space into loft type apartments that would rent for slightly more per square foot than office space did, but that would certainly take time to do. But I may pick up a starter position in SLG-I just to get some adrenaline going again, 80% bonds and CD’s now, pretty layback, but retirement is October 20th, so gotta do what you gotta do I guess.

      1. I dipped my toe in today in the 17 range for a feeler. I have been patient and told myself when I see some insider buys I will start a position

  18. Claim is that First Republic will not be bailed out. Fed/Treasury/FDIC will have to decide if they let it fail, force a shotgun wedding or other. Unknowable, but probably explains why all of the FRC preferreds were down bigly today. If it does not survive, my pure guess is they keep depositors @ 100%, and bonds, preferreds, common all go to ZERO. Same as Silicon Valley Bank playbook.

    NOT INVESTMENT ADVICE, you have to make your own guess. In Janet we trust!


    First Republic’s resi conundrum: pristine loans, rock-bottom rates

    It’s a great irony of the recent spate of banking contagion that Fitch assigned that superlative to First Republic’s real estate loans as it was downgrading the bank — a result of the recent spate of contagion that first struck the financial sector with the meltdown of Silicon Valley Bank two weeks ago.

    Those pristine mortgage loans are causing the San Francisco-based bank trouble for reasons other than their quality. Loan officers might have gotten the customer base right, but First Republic ran aground on the terms, given 97 percent of its mortgages that were issued while interest rates were on an extended run of historic lows.

    Now, as rates have skyrocketed, the bank appears to have been caught out. It needs to maintain a deposit base sufficient to back its lending, but might have to start paying out more interest on its deposits than it’s reeling in from its mortgages.

    1. well, the common shareholders sure think they are… It is trading at over $13 a share.

    2. Tex , last several years borrowers were looking for fixed rates, and the lenders should have been looking to sell adjustable loans.
      Now after reading, I am thinking that is what they did do in the commercial REIT market and that is what is causing distress. Both for the borrowers then the lenders.
      Example: I read AHH a month ago received a BBB rating from Morningstar and plans to issue fixed private debt to retire 55% of its current variable rate debt.
      They plan to see how the rest of this year and next before doing so.
      Neat balancing act as their costs increase and rates go up.

    3. As to why FRC hasn’t been sold: There was speculation by a commenter (who ran the numbers) on The Other Website that FRC couldn’t be sold because its value was negative due to underwater assets. BTW, Thanks for the link, Tex. The Real Deal website has a lot of interesting information.

      1. Bear:

        It isn’t speculation…the numbers and disclosures are right there in FRC’s recently issued 10K.

        They have a $4-$5B unrealized loss “hole” in the HTM portfolio and a $19B mark-to-market loss in the loan book.

        With 183M shares of FRC outstanding, this $23B hole completely wipes out tangible book value (and then some).

        Anyone buying FRC would have to mark these losses to market.

        The equity currently trading at $14+ and the preferreds at $5 each is definitely one for the history books. My guess is they will announce on April 1st or shortly thereafter that they will be not be paying the non-cumulative dividend payments for FRC+J, K, L, M, and N.

        Perhaps some kind of enormous convertible bond offering could save the day for the bank? Of course it would massively dilute the equity…but whatever it takes to survive until 2025.

  19. Qvc Inc Sr Sec Nt4.85%24 CUSIP: 747262AS2 just went down to ~$75 and YTM>33%. Seems like a go for just going to 04/2024 date. Hmmm…

    1. Their longer dated bonds are trading at 25%-28% of face. a price of 75 seems like you are paying too much.
      These prices for their debt look like QVC is a zombie company that was kept alive through extremely cheap debt, and higher rates are going to kill it off.

      1. to me the issue is can they make it to even 2024? The longer you go the risk is exponential, IMHO. So longer means I would not consider it. I would have rather had these in 9/23 timeframe…but wouldn’t dip in with AROI <30 as too risky.

  20. Bloomberg with a negative story on Schwab:

    Schwab’s $7 Trillion Empire Built on Low Rates Is Showing Cracks

    Schwab is unusual among peers. It operates one of the largest US banks, grafted on to the biggest publicly traded brokerage. Both divisions are sensitive to interest-rate fluctuations.

    Like SVB, Schwab gobbled up longer-dated bonds at low yields in 2020 and 2021. That meant paper losses mounted in a short period as the Fed began boosting rates to stamp out inflation.

    Three years ago, Schwab’s main bank had no unrealized losses on long-term debt that it planned to hold until maturity. By last March, the firm had more than $5 billion of such paper losses — a figure that climbed to more than $13 billion at year-end.

    It shifted $189 billion of agency mortgage-backed securities from “available-for-sale” to “held-to-maturity” on its balance sheet last year, a move that effectively shields those unrealized losses from impacting stockholder equity.

    “They basically saw higher interest rates coming,” Stephen Ryan, an accounting professor at New York University’s Stern School of Business, said in a phone interview. “They didn’t know how long they would last or how big they would be, but they protected the equity by making the transfer.”

    The rules governing such balance sheet moves are stringent. It means Schwab plans to hold more than $150 billion worth of debt to maturity with a weighted-average yield of 1.74%. The lion’s share of the securities — $114 billion at the end of 2022 — won’t mature for more than a decade.

    . . .

    Bettinger and Schwab said that the firm’s long history and conservatism will help customers navigate the current cycle, as they have for more than 50 years.

    “We remain confident in our client-centric approach, the performance of our business, and the long-term stability of our company,” they wrote in last week’s statement. “We are different than other banks.”

    We hold Schwab corporate bonds and Schwab bank CD’s in many accounts.

    1. What is the negative part? It sounds like they didn’t predict interest rates correctly, and then they dealt with that. So what? Where are the cracks?

      1. David:

        Like the article says, deposits aren’t moving from the Charles Schwab firm. They are moving from the bank deposit section to their money market funds, where they obviously earn much less in fees. The money market fund I am in (SNSXX) earns $30M per year in management fees, which is a pittance compared to the interest rate spread they earn by paying customers only 45 basis points on their billions in uninvested FDIC insured cash.

        They have also been taking in billions in deposits since this bank crisis started.

        So the big issue with Schwab is an EPS issue, and not a solvency issue. I would not be long SCHW in this environment. I believe that is why the stock hasn’t really been able to recover since it dropped from the $78 price it traded on 3/1/23.

    2. Tex,
      This era is the exact reason I chose to self-manage all my assets. Luckily, I discovered that I am adept enough to really learn from studying over long periods of time. That’s why I always refer here to trying, testing and retrying ‘tactical assumptions.” I take for granted that I am usually wrong and apply the lash to my assumptions by default.
      Annuities? Wow, who knows what’s hidden there. We used to give presentations for asset allocation alternatives to mid-sized, self-managed pension funds, both govt (like St Louis Lambert Field Employees Pension Plan) and businesses. The boards appointed to oversee these on a simple majority vote did not inspire the most confidence based on inexperienced individual opinions. I hear that kind, and larger, ticking under this ‘noise’ right now. Seems the balloon just got another big puff (systemic risk). The reach for yield goes back to the old adage, “Pigs get Slaughtered.”
      If the Smartest Guys here got this wrong get out the blacklight and others will be seen too.
      Glad I did not go into compliance.

  21. More confirmation…

    Hearing from a (very) well-placed Fortune 50 B2C friend that vendors across the board are calling, pushing for inventory reduction via discounting if necessary.

    A sea change from even a month ago.

    1. Alpha, I am a salesperson but guess what they have me doing? I am calling customers on late payments.
      On sales we always pull one out of the hat at the last minute and meet or beat our sales goal. Don’t think that’s happening this month.
      The lady I mentioned earlier who was working out of home and as of Friday is no longer with the company, requested last week to return an order from 6 month’s ago that the customer never picked up. I see this as housekeeping and cleaning up the inventory.
      An account that has branches with owner managers we had to put one branch on hold for not approving payment on a custom order from 6 months ago. I suspect knowing the manager they didn’t collect payment on a custom order then the customer backed out.
      My branch manager has been here 20 plus years. We had a account place an order a couple weeks ago that has only placed one order in 4 yrs and asked if their credit was still open. I suggested to the manager that he tell them the credit account was closed due to inactivity. He ok’d it. Will see how that works out. I’m just the salesman and old enough to be his dad.

    2. ARKO Corp. (ARKO) (“ARKO”), a Fortune 500 company and one of the largest convenience store operators in the United States, today issued a letter urging Travel Centers of America’s (NASDAQ: TA) (“TravelCenters”) Board to seriously consider ARKO’s proposal to acquire TravelCenters and engage with, rather than exclude, ARKO in the sale process…

  22. For those holding CUBI per FIDO

    March 23 (Reuters) – Customers Bancorp Inc(CUBI):


    1. Interesting, so I wonder if that’s a good thing or a bad thing…in the short term it could inspire confidence in the bank which is the most important metric right now.

    2. Might be a good thing for CUBI. The assets they get will likely be cleaned up for them before they transfer. The Feds are usually willing to bend pretty far in cleaning up assets to make a bank sale work.

      Feds are always happier to have a bank purchase rather than a straight liquidation. Usually ends up costing the feds less and helps build consumer confidence in the bank/banking system (as 2Chinooks pointed out).

  23. LNC-D moving down to 24.45 /24.50 and dropping fairly fast- not sure why, other than market dropping some.

  24. Good news on CUBI – via BMTX:

    “RADNOR, PA / ACCESSWIRE / March 22, 2023 / BM Technologies, Inc. (NYSE American:BMTX), one of the largest digital banking platforms and Banking-as-a-Service (BaaS) providers, today announced that the Company has executed a new Deposit Processing Services Agreement (DPSA) with First Carolina Bank for the Higher Education business and a new DPSA with Customers Bank for our existing and largest BaaS partnership deposits. Both bank partnership agreements include variable rate servicing fees which will result in superior economics for BMTX in the current interest rate environment.”

    CUBI had been anticipating their contract with BMTX would expire and the substantial fund on deposit from BMTX would leave the bank. I do not remember the exact percentage of total deposits BMTX accounted for, but it is significant…. And of course, in this environment, even though the loss of these deposits was anticipated and CUBI was prepared for it , the visual of a substantial percentage loss of deposits all at once would easily have been misinterpreted by Mr. Market…. It looks like they will now hold on to them… It’s nice to have a Sidhu daughter heading up BMTX… BMTX was the spinoff out of CUBI a few years back…

    1. Tex I thought it was a gonner in April. TD has frozen it in my account for a while now.

    2. COWNL @TDAMERITRADE had no idea what was going on. Still don’t.
      15 calls/emails, including head of COWN Investor Relations who said COWNL 3-1-23 had been liquidated.
      TDAMERITRADE listed the 3-15 dividend as “cash liquidation”…
      This concerns me…


        2033 Notes [aka COWNL]

        As previously reported, the Company entered into that certain Senior Notes Indenture, dated as of October 10, 2014 (the “Base Indenture”), as amended and supplemented by the Third Supplemental Indenture, dated as of June 11, 2018 (the “Third Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), by and between the Company, as issuer, and The Bank of New York Mellon, as trustee, security registrar and paying agent (in each such capacity, the “Trustee”), relating to the Company’s 7.75% Senior Notes due 2033 (the “2033 Notes”). On the Closing Date, in connection with the consummation of the Merger, the Company (i) satisfied and discharged the Indenture and (ii) issued and delivered a notice of redemption to the holders of the 2033 Notes to redeem all $100,000,000 in aggregate principal amount thereof at a redemption price equal to 100% of the principal amount to be redeemed plus the accrued and unpaid interest to, but excluding, the redemption date. On the Closing Date, the Company deposited with the Trustee the applicable payments to satisfy and discharge the Indenture and to eventually redeem the 2033 Notes. The 2033 Notes are expected to be redeemed on June 15, 2023.

          1. Yup….. I know I got mine and my account is at TDA… Yes, it is described as a “cash liquidation” by TDA for some reason, but nothing to be concerned about… The funds to pay for the call have essentially been escrowed until the first applicable call date. Hopefully it’s not being too optimistic to be considering what we own to be nearly the equivalent of a 3 month Treas (“the Company deposited with the Trustee the applicable payments to satisfy and discharge the Indenture”) at 7.75%.

            1. yep, was why I bought it. locked it up to keep me playing with it. Now just waiting to see what happens with TANNZ

              1. Me too, Charles…. I have so many situations I expect to get finalized in the next 30 days that I consider as cash… Here’s hoping none crash and burn..

  25. Looks like there are some SLMNP out there offered at 860, FWIW. About 7% QDI with built in put at a bit over 848.

    1. KioniMan–Picked up a couple more shares of SLMNP yesterday. Thanks to the person who suggested using Fido. TDA wouldn’t accept my order.

  26. PRIF-PK
    Fixed 7% rate perpetual preferred.
    Trading all-time lows at $18 handle today; puts annual yield close to 10%. Could be an “annuity” income potential holding.
    I’m not too familiar with these; will have to check out trading prices of all their other fixed redemption dated issuances for some clarity to see what sentiment is.

    1. Maybe the PRIF term issues could hold off some capital loss with a good yield.
      This company has ties to the PSEC clowns and those shares and the PSEC/A issues are in the tank.
      Sweet yield but a hard pass for me.
      LNC/D yields about the same IG trading near par. perpetual 4 1/2 years call protection. I picked up a full position last week under par.

      Be well and stay safe

    2. Theta, Dec. 2022 shareholder report issued today. Seems they held majority of floating notes so did much better than S&P, etc. Not a recommendation, just information.

  27. From Bloomberg:

    US officials are studying ways they might temporarily expand Federal Deposit Insurance Corp. coverage to all deposits, a move sought by a coalition of banks arguing that it’s needed to head off a potential financial crisis.

    Treasury Department staff are reviewing whether federal regulators have enough emergency authority to temporarily insure deposits greater than the current $250,000 cap on most accounts without formal consent from a deeply divided Congress, according to people.

    Tex’s comment: Better to do this a day early instead of a day late, although several hundred BILLION $’s have reportedly already left the non-TBTF banks. First Republic preferreds were crushed again today, so investors are not optimistic.

    1. Tex, The banks pre-existing vulnerability notwthstanding, it’s stunning that it appears one comment each from Peter Thiel and Ammar Al Khudairy triggered the collapse of SVB and Credit Suisse.

      This reminds me of the US Forest Service over-protecting forests from natural fires for too long, then one day…a match here, a spark there.

  28. Realty Income CUSIP 756109BD5 4.6%, matures 2/6/24 A3/A-, 82 pieces available @ ~ 99.22 without commission, YTM ~ 5.5%

    We don’t own in any any account

  29. FYI:
    5.93000% 03/28/2033
    Fixed Income Alerts
    CUSIP 3133EPEC5
    Coupon 5.930
    Maturity Date 03/28/2033
    First Call 03/28/2024
    Moody’s Rating —
    S&P Rating —
    Issuer Events NO
    Survivor Option NO
    Bond Type Agency
    Interest Accrual Date 03/28/2023

  30. Franchise Group (NASDAQ:FRG) has received an unsolicited non-binding proposal to be acquired for a price of $30.00 per share in cash.
    The unnamed suitor has offered to acquire all of the outstanding shares of the common stock of the company for a price of $30/share in cash.
    The proposal is up for review by FRG board of directors. The company makes no assurance that the proposal will result in a transaction.

  31. Those first two paragraphs should be read over and over until one gets the general idea that almost all of the realms we think we operate within are false. We are not free, we are beholden to those in power and have truly been colonialized by a few large players.
    Hank Paulson Playbook 101.

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